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Monday, 12 May 2014

The Internal Revenue Department (IRD) on Tuesday gave a stern warning that companies in Myanmar must file their taxes by June 30, otherwise they stand to face a heavy fine that could be up to 150 times the size of their actual tax bill.

“Trying to dodge tax could be a risky task. If they don’t follow the rules and procedures, a heavy fine will be imposed,” said Aung Myo Oo, the head of the Seikkan Township IRD.The department is holding legal conferences in every township to explain how to improve the collection of taxes. Myanmar currently collects the lowest amount of tax in local output among Asean countries.

Under section 21 of the commercial tax law, a company must pay 10 per cent of its due tax as a fine for failure to: register with the tax department, inform about running its business, pay monthly tax, file three-month and annual statements, pay annual tax, follow the rules and procedures, pay tax by the specified date and show required receipts or documents upon filing tax.